Estée Lauder sues Walmart, alleges counterfeit beauty products flood Walmart.com

Estée Lauder sues Walmart, alleging counterfeit goods flood Walmart.com

Estée Lauder files a federal lawsuit in California accusing Walmart Inc. of selling or facilitating the sale of counterfeit beauty products on Walmart.com, alleging the marketplace lists inauthentic items bearing brands including Estée Lauder, Le Labo, La Mer, Clinique, Aveda and Tom Ford. The complaint says the plaintiff purchased, inspected or tested multiple products — including an allegedly counterfeit Advanced Night Repair serum, a Le Labo fragrance and Clinique eye cream — and found them to be inauthentic. It notes some of the same products were cited in an earlier CNBC investigation into fraud on Walmart.com.

The complaint alleges Walmart plays an active role in enabling counterfeit listings by promoting and advertising third‑party sellers, using Estée Lauder trademarks in search‑engine optimisation to drive traffic, and presenting listings in a way that leads shoppers to reasonably believe Walmart, rather than a marketplace seller, is the vendor. Estée Lauder says Walmart profits from sales and cultivates seller “reputation and professionalism” while doing “very little to ensure that only authorized and authentic products” are allowed. The companies do not immediately comment and the court filing does not make clear when Estée Lauder obtained the tested samples.

The case underscores growing legal and reputational risk for large marketplaces as they expand third‑party offerings. A ruling for Estée Lauder could prompt stricter policing of sellers, changes to search and listing practices, and heightened disclosure of seller identity — with implications for Walmart’s marketplace growth strategy and consumer trust. The litigation arrives as retailers and regulators increasingly scrutinise online marketplace safety and authenticity standards.

Target shifts payroll to stores to improve service

Rival Target announces a reorganisation that reduces about 500 supply‑chain and regional jobs while directing more payroll to frontline store hours and guest‑experience training, aiming to address out‑of‑stock items and longer checkout lines. The move highlights competitive pressure in U.S. retail to prioritise in‑store availability and service as a way to win back customers.

Retailers face inventory and trust headwinds

The Estée Lauder suit and Target’s labour shift reflect broader industry strains: maintaining on‑shelf availability, protecting shoppers from counterfeit or fraudulent listings, and preserving brand trust in an era of heavy third‑party marketplace use. How Walmart and peers adjust verification, search practices and frontline investment will shape customer confidence across U.S. retail.